The income tax rate here is tiered....our top marginal tax rate is 35%, then 33%, then 28%, etc and so on.

However, because of a lot of loopholes in the tax code, people in the 35% tax bracket usually pay an effective income tax rate of like 26%.

On top of those income taxes, Americans also pay payroll taxes....6.2% of our paychecks go to Social Security (up until around 115K or so, every dollar made after that is not subject to the SS tax) and 1.45% go towards Medicare. Employers also pay 6.2% and 1.45% towards those things.

Unfortunately, people who make their income through other means (like investments) only pay a 15% tax on the money earned, and nothing into SS or Medicare. Though the new healthcare bill does levy a 3.9% Medicare tax on investment income

It depends on how much you make and how you make it. I get taxed about 8% and make about 10-11k a year. It progresses that way where the more you make the more you get taxed. However, there are very little taxes levied on returns from investments (capital gains). For example if you invest in Apple and their stock prices go higher, the money you made off that would not be subject to much taxation.

But yes our tax system is screwed and the rich need to be taxed a lot more.

The income tax rate here is tiered....our top marginal tax rate is 35%, then 33%, then 28%, etc and so on.

However, because of a lot of loopholes in the tax code, people in the 35% tax bracket usually pay an effective income tax rate of like 26%.

On top of those income taxes, Americans also pay payroll taxes....6.2% of our paychecks go to Social Security (up until around 115K or so, every dollar made after that is not subject to the SS tax) and 1.45% go towards Medicare. Employers also pay 6.2% and 1.45% towards those things.

Unfortunately, people who make their income through other means (like investments) only pay a 15% tax on the money earned, and nothing into SS or Medicare. Though the new healthcare bill does levy a 3.9% Medicare tax on investment income

I guess. I mean the intent of the tax law is to take 35% of income made, but certain tax breaks give people legal ways to get around paying that amount. That's pretty much what a loophole is. But I do think the word carries a certain negative connotation to it and the "loopholes" a lot of people use are often things like tax credits for children and mortgage payments and whatever.

I don't know...the way he's describing it makes it sound almost like the flat tax some of the Republicans were pushing. Have everyone at one level, and then maybe a 2nd higher level for extremely high incomes.

But I don't know enough to know if their poor have to pay that 35% rate or if there are ways for lower income folks to pay less in taxes and etc